Data from the Foreign Market Quotations Database (FMQD) reveals a steady strengthening of the naira throughout the week. The local currency began its upward trajectory on Monday, rising by 0.62% to reach N1,607.15/$1. The trend continued on Tuesday, albeit at a slower pace, with an additional 0.38% appreciation bringing the rate to N1,601/$1. On Wednesday, the naira gained 0.28%, closing at N1,596.52/$1. Notably, this marks the first time since May 2024 that the naira has appreciated on three consecutive days within a single week.

Throughout the period, the naira fluctuated between a high of N1,628/$1 and a low of N1,520/$1, reflecting some volatility in the market.

In a related development, the foreign exchange turnover on the official market saw a significant increase after experiencing a decline earlier in the week. The turnover rose by 51.73%, reaching $93.92 million from the previous day’s $61.9 million. This rise follows a decrease in turnover of 41.40% on Monday and 19.7% on Tuesday. The increase in turnover aligns with the Central Bank of Nigeria’s (CBN) latest Retail Dutch Auction.

During the auction, the CBN sold $876.26 million at a rate of N1,495/$1 to 26 qualified banks. Dr. Omolara Omotunde Duke, Director of the Financial Markets Department, indicated that the auction aimed to mitigate demand pressures in the FX market and facilitate price discovery. Out of a total bid amount of $1.18 billion submitted by 32 dealer banks, six bids were disqualified. The disqualifications were due to four banks missing the submission deadline and two failing to adhere to the required bid templates. The CBN supplied approximately 75% of the total bid amount at the auction.

This recent auction is the largest conducted under Governor Yemi Cardoso’s tenure at the CBN, reflecting the apex bank’s ongoing efforts to stabilize the FX market and manage currency fluctuations.